Here Are The 8 Biggest Changes to Social Security in 2019 – The Motley Fool

About 62 million Americans count on Social Security as a major source of their income, including more than 43 million…

About 62 million Americans count on Social Security as a major source of their income, including more than 43 million retired workers. Programmet er kritisk til økonomisk sikkerhed for disse amerikanerne, og det gjør årlige ændringer til programmet must-know news. Read on to learn about the biggest changes to Social Security next year.

,461, begyndelsen af ​​december. 31. It also estimates the average married couple will receive $ 2,448 per month next year if both people are receiving benefits.

IMAGE SOURCE: GETTY IMAGES.

No. 2: Maximum Social Security increases

Workers with high incomes over their career could bring home more in Social Security if they retire in 2019. The maximum social security payable to retirement workers is increasing regardless of whether you retire at age 62, 65, or 70. The following table shows the year-over-year change to the maximum payable in Social Security, but do not get too excited.

Maximum Social Security If You Retire in 2019

Age

2018

2019

Percentage Change

62

Maximum Social Security If You Retire in 2019

Age

2018

2019

] $ 2,159

$ 2,209

2.36%

65

$ 2,589

$ 2,757

6.49%

70

$ 3,698

$ 3,770

1.95%

Data source : Social Security Administration.

No. 3: The tax man cometh

Payments to current Social Security recipients are funded primarily by payroll taxes on current workers’ income, and in 2019 maximum taxable earnings will increase to $ 132,900 from $ 128,400 in 2018. That’s a 3.5% increase. The bright side? The tax rate itself is not changing. It will remain 12.4%, split equally between employee and employer.

No. 4: Normal retirement age increases by two months

Retire earlier than that point and you can only collect 100% of your social security benefits if you wait to claim until normal retirement age. Your Social Security Benefit will be reduced based on the number of months early. You begin to draw your benefits.

Your full retirement age depends on the year in which you are born. For people born after 1954, it increases by two months every year to age 67 from age 66. In 2018, full retirement age was 66 and four months, so it will be 66 years and six months for people turning 62 in 2019. [19659002] No. 5: Du kan tjene 3,5% mer i 2019 uden en reduktion

Do not worry, though. Any money withheld because of the earnings test will increase the benefit you receive when you reach full retirement age. And, if you have already reached full retirement age, you are no longer subject to this test.

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No. 6: Social Security’s bend points increase

To calculate the benefit you will receive at full retirement age, Social Security justifies your highest 35 years of income for inflation and then calculates your average monthly income over those years. Then, it reduces that amount at specific income levels called bend points. Het bedrag van de verlaging tot gemiddelde inflatie-aangepaste maandverdiensten (AIME) is een vast percentage, maar de inkomstenpunten veranderen jaarlijks. In 2019, the first bend point is $ 926, up from $ 895 in 2018, and the second bend point is $ 5,583, up from $ 5,397 in 2018. The following table shows you how much credit you will get for AIME up to and beyond each bend point.

Fixed Percentages of Income Used in Bend Points Calculation

Up to First Bend Point

Between First and Second Bend Point

Above Second Bend Point

90%

32%

15 %

No. 7: The inflation adjustment for Social Security’s calculation increases

As I just mentioned, Social Security adjusts your historical income for inflation. Dit doet dit door zijn nationale gemiddelde loonindex, of AWI, met een twee-jaarslag. In 2017, the average wage was $ 48,251.57, which is 3.45% higher than $ 46.640.94 in 2016. Social Security multiplies the 2017 average wage by the 2016 AWI, which was $ 48,642.15. Then, it divides that figure by the 2016 average to arrive at an AWI of $ 50,321.89 for 2017.

For people turning 62 in 2019, Social Security multiplies earnings in years before 2017 by the ratio of $ 50,321.89 to the AWI for each respective year. For example, $ 50,321.89 divided by 2016’s AWI $ 48,642.15 is 1.0345, so your earnings in 2016 will be multiplied by 1.0345 to adjust them for inflation.